NFTRH; Yield Curve and Gold

The latest data from Bloomberg shows yields declining in gold’s favor today as the short end (2’s & 5’s) drop in yield faster than the long end.  That is a bump up in the curve.

10.5.2.yields

As for a simpler view, here is the 10 vs. 5 today, which is making yet another try for the 50 day averages.  These have routinely failed previously.  Maybe the positive MACD divergence will help this time (can’t hurt).  So there is no signal yet, but in the very short term at least, the curve is bumping in gold’s favor again, despite the stock market puffing out its plumage yesterday.

10.5

Here is the daily chart of the 10 vs. 2 year as of yesterday’s close.

10.2.daily

And once again, the weekly view, which gold bugs want to see get back above the trend line.

10.2.weekly

Just a little snapshot into a gold fundamental for you today.  Tune down India, China and the media noise.  Gold will likely do well when credit spreads become risk ‘OFF’ and the likes of the above begin new up trends.

Why chase inflammatory news all over the place?  There is a good chance that bond markets will give hints through their spreads before the self-promoters, conspiracy detectives and newscasters start lathering the troops again.